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In the eyes of an investor, a bootstrapped startup that has
proven stable and successful within the first year is powerful.
It not only raises confidence in the product and the
leadership behind it, but also indicates that any invested money
will likely not be thrown away.

Ultimately, when it comes to working with
investors, it’s important to prove that a startup and
the people behind it not only know how to spend money, but know
how to bring in additional money.

To successfully bootstrap a company in its first year, it’s
important to consider a few things:

1. Cut the nonessentials and focus on immediate
needs. There is nothing more important to startup
success than the talent that makes it all possible. Avoid any
unnecessary expenses, such as office overhead or “frills,” to
free up money to invest in better talent.

Virtual
offices will allow team members to work together from
anywhere in the world and are extremely cost-effective.
Ultimately, cutting costs wherever possible will more likely
enable worthwhile investment in a larger team, which will be the
catalyst to growth for the company.

2. Focus on two types of talent: engineering and
marketing. An innovative and savvy engineer knows the
ins and outs of mobile apps and understands what users truly want
and need. An intelligent and driven marketing professional
understands the market and how to reach the desired target
audience.

With these two power talents working side by side, any product
has a good chance to be successful.

3. Don’t cut corners. Investors need to know the
business and its leadership are stable and legit, so do
everything by the book. Once they get involved, investors will
want to see paperwork, as well as profits and losses and
balance sheet reports right off the bat. This should be a
priority from day one.

Find an accountant and purchase good accounting software to
ensure that records are clear and corners are not cut. This will
also allow for extra time to tend to other important matters
within the startup.

4. Cover the legalities before it’s too late.
It’s critical to ensure the product or app is covered and that
there are no loopholes that would allow someone to steal its name
or intellectual property once it takes off.

During the planning phases, when speaking to potential investors,
partners, or developers, it’s also wise to use a confidentiality
agreement to ensure everything stays within the four walls.
Additionally, copyright any sketches, mockups or documentation of
the product during development stages.

5. Utilize freelance consultants. Skilled
freelance
consultants offer additional niche talent only when it’s
needed. Build and keep a solid list of trusted and intelligent
freelancers who can be utilized when the time is right. With the
extra cash flow freelancers provide, startups have more ability
to hire the best full-time staff needed for success.

It’s no secret that the first year for a bootstrapped startup
will have many highs and lows. Despite the uncertainty and
exhilaration that comes with those highs and lows, it’s important
to stay focused on what’s needed to get to the next step.

Eventually, those steps will likely lead to talking with
investors to get the startup to the next level. Cutting no
corners from the very first day, bringing on the best talent and
preparing for failure and success will prove to an investor that
the product and those behind it have what it takes to succeed.